Important information regarding updated tax calculator

The Port Jefferson School District, like many school districts throughout Long Island, contracts with Munistat Services Inc. for advisement and estimates on school district borrowing and debt management. Munistat provides services to several hundred school districts, nonprofit organizations and local governments as a financial advisor specializing in debt management and securities offerings.

At our request, Munistat provided an estimate of state aid for our proposed capital bond project in September, and the district used this figure in bond presentations and the development of the estimated tax calculator for residents. However, late last week, Munistat advised the district that current bond sales have come in at a lower interest rate than initially estimated and that they had overestimated the district’s state aid by $400,000 per year.

Given this update, the district’s estimated tax calculator has been redeveloped to reflect these new projections. The original tax estimates, which ranged from $198 to $997 per year, have changed to $239 to $1,185 per year. Information on Munistat's revised schedule indicating more accurate estimated amounts for interest rates, state aid and the tax rate has also been posted to the district’s website.

Needless to say, the district is disappointed that this inaccuracy occurred but is thankful that this information became available to share with residents before our scheduled bond vote. The district believes that the updated tax calculator will provide residents with a more accurate estimate of what the proposed bond will cost their households.

Throughout our correspondence, Munistat has apologized for this inaccuracy, which is captured in their letter to the district:

"Unfortunately, the last estimated debt service schedule that I provided to you contained an inadvertent inaccuracy pertaining to the state aid amount. The inaccuracy caused the estimated average tax rate to be understated. We apologize for the oversight in the estimated schedule."